Breidor Financial Group

Tax Treatment of Benefits

For Tax-Qualified Long-Term
Care Insurancepolicies that pay benefits under an Indemnity
Model, benefit payments are subject to a daily dollar cap.

2015 Daily Indemnity(Per Diem) Limit

2014 Daily Indemnity(Per Diem) Limit

2013 Daily Indemnity(Per Diem) Limit

$330

$330

$320

If the individual taxpayer receives Tax-Qualified
Long-Term Care Insurance benefits in excess of this annual daily
limit, those "excess benefits" will be considered income for tax purposes.
However, the taxpayer may exclude from income the "excess benefits" to the
extent of the individual's actual unreimbursed
Tax-Qualified Long-Term Care expenses.